AA Insurance comments on the announcement by the Association of British Insurers that nearly 2,300 attempts at insurance fraud are detected each week.
The cost of fraud affects the price we all pay for our cover: in fact, it's estimated that fraud adds up to £90 to the cost of every general insurance policy bought.
Simon Douglas, director of AA Insurance
Nearly 2,300 attempts at insurance fraud are being detected by insurers every week, according to new industry figures.1
Broker AA Insurance – which operates its own fraud detection unit in Cardiff – works closely with insurers, the Insurance Fraud Bureau, and the police to help identify and stop those who attempt to defraud their insurers.
AA Insurance alone identifies over 100 attempts at fraud every week.
Simon Douglas, director of AA Insurance, comments: "These figures are encouraging because they reflect of the growing success of the insurance industry in the war against fraud, rather than more fraud taking place. That is reflected by the fact that both car and home insurance premiums are falling.2
"Making false claims or even exaggerating a claim isn't a victimless crime. Some people may think that it's acceptable to take more than they should from an insurance company. But the cost of fraud affects the price we all pay for our cover: in fact, it's estimated that fraud adds up to £90 to the cost of every general insurance policy bought.3
"Many attempts at defrauding an insurer are relatively petty but it all adds up. The industry is making significant inroads into tackling serious insurance fraud such as 'cash for crash' or 'ghost broking' scams, and there have been several successful court cases that have put fraudsters behind bars.
"This should send a strong signal to anyone thinking of trying it on.
"While you might not end up in prison, if an insurer finds that you have attempted to falsify a claim you'll find it difficult to obtain insurance cover in the future. Insurers don't like dishonest customers."
1 Figures published 30 May 2014 by the Association of British Insurers show 118,500 bogus or exaggerated insurance claims – equivalent to 2,279 per week – were detected last year; the claims are worth £1.3 billion, or £3.5 million every day, up 18% on 2012.
2 At the end of the first quarter of 2014, the AA's British Insurance Premium Index reported that the average quote for a comprehensive car insurance policy had fallen by 16.6% over the previous 12 months; and the average quote for a combined buildings and contents policy has fallen by 8.4% over the previous 12 months.
3 Source: Association of British Insurers.
30 May 2014